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Benefits of Making Business in Hong Kong | Buy & Sell Business

At MergersCorp we help our clients confidentially buy and sell privately held businesses, aligning the interests of all parties for mutual success and satisfaction.<br><br>Find more at: http://mergerscorp.com

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Benefits of Making Business in Hong Kong | Buy & Sell Business

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  1. BENEFITS OF MAKING BUSINESS IN HONG KONG WWW.MERGERSCORP.COM

  2. At MergersCorp M&A International we help our clients confidentially buy and sell privately held businesses, aligning the interests of all parties for mutual success and satisfaction. It is our goal to make the process of either buying a new business or selling your current business as smooth and efficient as possible. We know how important confidentiality is to our sellers and we treat it with the utmost importance. WWW.MERGERSCORP.COM

  3. BENEFITS OF MAKING BUSINESS IN HONG KONG WWW.MERGERSCORP.COM

  4. Country Overview Hong Kong is located in Eastern Asia on the southeast coast of China. The official languages of Hong Kong are Chinese and English, and the currency is the Hong Kong dollar (HKD). Hong Kong continues to link its currency closely to the United States dollar (USD), maintaining an arrangement established in 1983. Hong Kong is one of the freest economies in the world. The Hong Kong SAR Government has long been endorsing the 'market driven with minimal government interference' policy in order to create a business-friendly environment in Hong Kong. Hong Kong became a member of the Asia Pacific Economic Cooperation in 1991 and a member of the World Trade Organization (WTO) on 1 January 1995.

  5. Executive Summary Over the past few decades, Hong Kong has been transformed from a labour intensive manufacturing-based economy towards a high value-added and knowledge-based economy, with focus on international trade, financial services, tourism, etc. Since the handover in 1997, Hong Kong has become increasingly integrated with China through trade, tourism, and financial links. Hong Kong has also established itself as the premier stock market for Chinese firms seeking to list abroad and a prime renminbi (CNY) offshore centre. Hong Kong's economy has moved away from manufacturing and is now services-based. The region is a major corporate and banking centre as well as a conduit for China's burgeoning exports. Its deepwater port is one of the world's busiest.

  6. Introduction – Doing business in Hong Kong Hong Kong is ranked world's 3rd easiest place to do business among 190 economies, according to the World Bank's Doing Business 2020 Hong Kong is an ideal platform for doing business in Asia. Hong Kong is a free port that does not levy any customs tariff and has limited excise duties. Its strong rule of law and respect for property rights make it a strategic platform for U.S. companies, especially small- and medium-sized firms, seeking to do business in the region. Hong Kong’s businesses enjoy close links to mainland China and the rest of Asia.

  7. Conducting business in Hong Kong The most common type of business entities in Hong Kong are : • Limited Liability Company • Sole Proprietorships •Partnerships. •Foreign Company Office Applications for company incorporations includes a simultaneous application for business registrations. Apart from the incorporation documents, the following must also be delivered to the Company Registry (CR): •A Notice to Business Registration Office (IRBR1) •Business registration fee •Levy to the Protection of Wages on Insolvency Fund:

  8. Taxation in Hong Kong Taxation in Hong Kong is proportional to income. The city’s most affluent pay the most, and low-income households are hardly taxed at all. Salaries tax is set at 2% for homes earning less than HK$40,000 a year, and increases progressively to 17% for those earning HK$120,000 or more. Anyone living in Hong Kong for more than 60 days is subject to personal income tax of up to 17%. The ceiling for corporate tax is set at 16.5. The city has no capital gains tax,, no withholding tax, no estate tax, no dividend tax, no sales tax or value-added tax, and no tax on interest For those reasons, Hong Kong is a popular shopping destination

  9. Trade Hong Kong is the 33rd largest export economy in the world and the 38th most complex economy according to the Economic Complexity Index (ECI). In 2017, Hong Kong exported $136B and imported $608B, resulting in a negative trade balance of $472B. In 2017 the GDP of Hong Kong was $341B and its GDP per capita was $61.5k. The top exports of Hong Kong are Gold ($25.6B), Broadcasting Equipment ($12.6B), Integrated Circuits ($7.53B), Diamonds ($5.4B) and Telephones ($3.79B), using the 1992 revision of the HS (Harmonized System) classification. Its top imports are Integrated Circuits ($168B), Broadcasting Equipment ($45.4B), Gold ($35B), Office Machine Parts ($28.6B) and Telephones ($28.1B).

  10. Banking in Hong Kong There is no central bank in Hong Kong. The Hong Kong Monetary Authority (HKMA), set up in 1995, performs most of the functions of a central bank, except for the issue of banknotes, which function is entrusted to three commercial banks, namely, the Hongkong & Shanghai Banking Corporation (a British bank), the Standard Chartered Bank (a British bank) and the Bank of China. The HKMA is the authority for the regulation of the banking industry. It is also a lender of last resort to the commercial banks. One major function of the HKMA is to operate the linked rate system, which Hong Kong adopted in October 1983, and under which the HK dollar is linked to the US dollar at the rate of US$1:HK$7.8..

  11. Our M&A Process NEGOTIATION & CLOSE POST MERGER INTEGRATION (PMI) INTEGRATION (PMI) POST MERGER TARGET APPRAISAL APPROACH DUE DILIGENCE Key Areas  Target & market analysis;  Initial assessment of synergies & value drivers;  Indicative valuation;  Go or No-Go decision;  Preparation of transaction documents (NDA – Non- disclosure Agreement/LOI- Letter of Intent);  Select Transaction team;  Appoint advisors;  Consider funding ability.  Initial approach letter;  Signing of NDA;  Prepare & share initial information requests;  Formulation of LOI (Letter of Intent) & possible negotiations;  Initial meeting and Q&A;  Circulate information on the Target to the Transaction team.  Set scope of due diligence;  Set up VDR (virtual data room);  Coordinating of due diligence, further meetings and Q&A sessions;  Consider points relevant to the Post-Merger (PMI) phase;  Revisit indicative valuation & prepare detailed valuation based on due diligence findings;  SPA negotiations with the seller;  Development of final structure (share/asset deal) and final valuation;  Approvals;  Signing of SPA & Close.  Consider the extent of integration;  Development of 100 Day PMI Plan;  Consider short & long term objectives;  Estimate requirements to capture synergies;  Determine resource needs & optimal allocation. Parties Involved  CFO;  Head of M&A;  Accountants;  Corporate finance advisors;  Consultants.  Senior management;  CEO, CFO, CTO;  Strategy director;  Head of M&A;  Head of Business Development;  Consultants.  Company general counsel;  Lawyers;  Senior management.  Company general counsel;  Lawyers;  Senior management/HR. 11 © Midaxo 2018 www.midaxo.com

  12. Looking to Buy or Sell a Business? CONTACT US NOW FOR A FREE BUSINESS VALUATION WWW.MERGERSCORP.COM

  13. MergersCorp.com The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. Member firms of the MergersCorp network of independent firms are affiliated with MergersCorp International. MergersCorp International provides no client services. No member firm has any authority to obligate or bind MergersCorp International or any other member firm vis-à-vis third parties, nor does MergersCorp International have any such authority to obligate or bind any member firm. Copyright © 2020 MergersCorp International. All rights reserved. 13 © Midaxo 2018 www.midaxo.com

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